This branch network in Alicante has continued its quiet contraction. The consolidation of assets, ongoing digitization, and thinning profitability have driven a steady reduction in the number of operating offices. The banks have merged, reduced presence, and concentrated activity. Four major Spanish banks now command about 65 percent of the branches in the area, a signal of the sector’s shift toward larger, fewer locations.
Recent figures from the Bank of Spain illustrate the sector’s structural changes in Alicante. By the end of last September, only six hundred branches remained active in the province, after ninety-two branches closed in the previous year. It is important to note that many of these reductions followed the CaixaBank and Bankia merger in the final quarter of the previous year. Looking ahead, the pace of closures appears to have slowed as 2022 progressed.
Open branches account for roughly one third of the pre-crisis total. In mid-2007, when savings banks were expanding, there were as many as 1,770 branches in Alicante. The crisis that followed led to a steady decline, shaped by a series of mergers that reshaped the landscape and left fewer institutions with a broader footprint.
Beyond the shrinking network, the restructuring also brought a tighter concentration of establishments. In 2007, the province hosted 53 organizations; today, only about half of that number operate in Alicante, and many operators have a sparse presence. Fewer players means fewer local options for customers, though a few institutions still operate with substantial branch counts. In practice, just nine operators now run more than ten offices each.
Even with adjustments, Sabadell has remained the lead in Alicante by branch count, totaling 139 branches. CAM had historically held a strong position, but the Bankia and CaixaBank integration altered the hierarchy. CaixaBank now sits in second place with around 111 branches, ahead of BBVA with 76 and Santander with 58. The consolidation behind these leaders accounts for roughly two-thirds of the province’s branch network.
These four major banks concentrate about 65 percent of the provincial network, a rise from twenty points higher than the four most asset-rich banks in 2007. Including Cajamar’s 71 branches (across CaixaLtea, Caixa Petrer, and Caixa Callosa), the top five banks now hold about 75 percent of branches, up from around 50 percent in 2007. This shift underscores the strong reconfiguration toward a handful of dominant players.
race from afar
Joaquín Maudos, deputy director of the Valencian Institute for Economic Research and a leading banking expert, described the adjustments as necessary because there was an overcapacity to be addressed. While the overall concentration in Spain exceeds the European average, he notes that this does not automatically equate to reduced competition. Remote banking channels allow customers to access services without a local office in many cases.
The expert also urged the National Markets and Competition Commission to ensure sufficient diversity in the market. He expressed confidence in the measures banks have adopted to prevent crises and to improve access to financial services in small municipalities identified in Ivie’s reports. The real question now is whether this tuning will continue.
Some bank executives, such as César González-Bueno of Sabadell, suggest that 2023 may not bring drastic cuts, but that does not guarantee a halt to closures. Maudos still sees room for a measured adjustment as conditions change and banks reassess footprints.
Labor unions for the sector have warned that ongoing shutdowns could threaten stability for certain groups, including the elderly, raising concerns about access to branches in remote areas as closures persist. As the sector reshapes, the social impact remains a critical consideration.
service centers
At the same time, the meaning of a financial office is evolving. Institutions tend to favor larger delegations that can offer advisory services for savings products and credit management. Routine transactions are increasingly handled through digital channels or ATMs. CaixaBank has pursued this model aggressively, while Santander has experimented with a cafe-style format in some offices. Sabadell has restricted its so-called mega-offices to one location per region, yet plans to modernize some delegations to fit changing needs, including a forthcoming relocation of a branch in Elche and another in Xàbia.
The shift toward more focused, high-value services within fewer branches signals a future where customers interact with banks primarily through digital platforms, with physical locations serving as centers for guidance and complex financial planning.
In this evolving landscape, the Alicante market exemplifies how major banks consolidate footprints while preserving essential access to financial services for communities. The balance between physical presence and digital convenience continues to shape policy, competition, and consumer choice in the region.